Pricing isn’t just math—it’s one of the most powerful strategic tools in your business. Yet many service-based entrepreneurs treat it like a quick decision or copy-paste from competitors.
If you’ve ever felt unsure about what to charge—or worried that your pricing doesn’t reflect your value—you’re not alone. I’ve priced global products, negotiated with retailers, and now help entrepreneurs like you build pricing strategies that feel right and work.
This guide will help you avoid common pricing traps, understand your market, and choose a pricing model that supports your growth.
Why Pricing Feels Personal (and Why That’s Okay)
In service-based businesses, you are often the product. That makes pricing feel personal—like a reflection of your worth. It can trigger imposter syndrome, fear of rejection, and endless comparison.
But here’s the reframe: pricing is a business decision, not a personal judgment.
And here’s the risk: pricing too low can lead to resentment. When you feel underpaid, it subtly erodes your energy, generosity, and commitment. That’s not good for you or your client. A healthy client-coach relationship starts with mutual respect—and pricing plays a role in that.
Three Common Pricing Pitfalls to Avoid
1. Underpricing to Feel Safe
Setting prices too low to attract clients may seem smart early on, but it erodes perceived value—and your motivation. Resentment builds, and burnout follows.
2. Charging by the Hour
While charging by the hour is common especially in project where the scope is not clear, most experts recommend moving away from it as soon as possible. If you think about it, it undervalues efficiency and expertise, you earn less for delivering faster results. This model rewards time, not the result. You are not selling time – you are selling transformation. Hourly pricing caps your maximum earning potential, invites micro-management and does not help client commitment. Each time there’s an opt in/ opt out mindset.
3. Copying Competitors
Pricing based on what others charge—without understanding your unique positioning—leads to misalignment. Your pricing should reflect your value, your audience, and your business goals. It is a good idea to know how your pricing compares to other alternatives, but where you sit in the market scale should be a strategic decision.
Strategic Pricing Starts with Market Understanding
Before you set a price, you need to understand your market. That’s why I always start with:
- Defining the Market – Who’s out there?
- Understanding the Market – What do they need, and what are they willing to pay?
- Defining the Offer – What transformation do you deliver, and how do you package it?
In the Understanding the Market phase, you’ve already researched the price ranges of typical product formats. Treat these ranges as a scale, with 100% representing the average market price.
- Positioning above average signals a premium offer. Make sure your messaging and value proposition reflect that.
- Positioning below average can drive volume—but may also imply that less is included. Be intentional and transparent.
Accessible Pricing Is a Strategic Choice
Pricing below average doesn’t mean “cheap.” It can signal value for money and accessibility—a valid and powerful positioning.
Take IKEA, for example. Their affordable prices come from smart savings in logistics, packaging, and assembly—not from compromising on design or quality. IKEA has built a global brand by democratizing good design. If you choose this route, just be aware: there will always be more pressure on cost control.
Pricing Models That Work for Service-Based Entrepreneurs
1. Value-Based Pricing
Price based on the transformation you deliver—not the time you spend. This model works best when your offer solves a high-priority problem or delivers measurable outcomes.
To define your value:
- Compare your service to the cost of alternatives (e.g., hiring a full-time employee).
- Identify additional profit or quick wins your service enables.
- Consider risk avoidance—what damage or loss are you helping prevent?
Example: A friend of mine does microbiological testing for breweries. If this isn’t done, they risk releasing contaminated products, which could damage their brand and consumer trust. That’s a value worth pricing in.
2. Tiered Packages
Offer different levels of support at different price points. Helps clients self-select based on their needs and budget.
Example: Starter → Core → Premium tiers, each offering increasing depth, access, and transformation.
3. Starter Offers
Ideal for building trust and lowering the barrier to entry. Can be a mini version of your full service, a workshop, or a diagnostic session.
Tip: Avoid completely free offers. Instead, offer low-priced entry points (e.g., €7–€27) to attract genuinely interested prospects.
Cost Matters – But Only to Judge Viability
The only role cost should play in pricing is in determining whether the product is viable.
If your market-based pricing doesn’t deliver the expected profit:
- Reduce scope to match what the market is willing to pay.
- Split benefits so clients can build their ideal package.
- Discontinue offers that consistently fail to meet profitability thresholds.
This isn’t about cutting corners—it’s about aligning value, delivery, and sustainability.
Avoiding Scope Creep with Clear Boundaries
Scope creep is one of the most common pricing pitfalls in service businesses. It starts with a small “extra” and ends with a blurred line between what’s included and what’s not.
Here’s how to avoid it:
- Be crystal clear about what’s included in your price.
- Define deliverables, timelines, and boundaries.
- Keep the door open for scope extensions—but price them appropriately.
Offer Choices, Not Surprises
When a client asks for something extra, don’t jump into action—offer options.
Outline how the request could be delivered, and what additional cost it may involve. They can always say no—or say yes, and you’ve just grown the project.
Being honest about the value, but giving the client the choice, builds trust and long-term relationships.
Freebies vs Paid Entry Points
There’s a growing opinion that Lead Magnets are dead. People download freebies they never read. But if they pay—even just €7—they’re more likely to engage.
- A low initial price creates a psychological shift: they’ve invested, even a little.
- You attract people who are genuinely interested, not just curious.
When Free Still Makes Sense
Not all free offers are ineffective. Some formats still serve a strategic purpose—especially when they help a potential client make a purchase decision.
Consider offering:
- A free online coffee chat – a short, structured conversation to explore fit and build trust.
- The first episode of a paid series – a teaser that gives a taste of your teaching style or framework.
- A free diagnostic or audit – only if it’s truly low-effort or fully automated. Otherwise, it can get out of hand fast, and a following business is never guaranteed.
The key is clarity: free offers should be positioned as part of a decision-making journey, not as standalone freebies.
Pricing Is a Growth Lever, Not Carved in Stone
Pricing isn’t a one-time decision—it’s a living part of your strategy. It evolves as your brand grows, your audience shifts, and your confidence builds.
So experiment. Reflect. Adjust.
And if you’re ready to build a pricing strategy that reflects your value and fuels your growth…
